Bank Scandal

August 17, 1985

TAIPEI, TAIWAN — Taiwan's deputy finance minister, asked to take over after the resignation of Finance Minister Loh Jen-kong, says that he too is quitting. Li Hung-ao's reason: An obligation to his former boss. A parliamentary commission blamed Loh and his predecessor, Hsu Li-teh, for allowing the Tenth Credit Cooperative, a bank owned by the giant Cathay industrial group, to make illegal multimillion dollar loans to its subsidiaries. A spokesman for Premier Yu Kuo-hwa said Yu would probably leave a decision on Li's resignation to the new finance minister, who will be named within a week.